Reports that the directory service Scoot.com plc was in
negotiations with French utilities and media group Vivendi with a
view to the takeover of the UK on-line rival of Yellow Pages sent
shares in Scoot.com soaring by 52% yesterday. However, just 20
minutes before the markets closed, a statement was released saying
that it was not in takeover talks, causing anger among
investors.
The failure of Scoot.com to make a statement when the stock
market opened led many investors to believe the earlier reports
that Vivendi, which already holds 22.4% of the shares in Scoot.com,
was about to acquire the company for £1.7 billion. The price, being
almost three times the company’s value, caused a buying spree among
investors, pushing the share price up by 52%.
In its 4pm statement, Scoot.com said, “there has been no
suggestion that Vivendi wishes to make an offer for the whole of
the issued share capital.”
Rules for companies listed on the stock market mean that if
Vivendi were to increase its holding in Scoot.com to more that 30%,
it would be forced to make a bid for the entire company. For this
reason, Scoot.com could not say that Vivendi was interested in
increasing its stake without also denying that takeover talks had
taken place. Scoot.com’s investment banker adviser and the Takeover
Panel said the statement was delayed because of Vivendi’s existing
stake.
